Selling and switching to Joint Mortgage

rufus86

Hi

I'm considering selling my flat and didnt want to wait another 20 minutes on hold to the Halifax while I spoke to another dept...

I have £103,000 outstanding on my mortgage, with my flat being valued £205,000 (London). The Halifax have said if it sells for that, I could borrow an additional £60,000. So have i done the following correctly:

205,000 - 103,000 = 102,000
102,000 + 60,000 = 162,000
162,000 + Maximum Mortgage based on Joint income = Value of Property I could afford?

Thanks

kingstreet

If you can borrow £162k and you have £102k to put in as a "deposit", your maximum purchase price is £264k.

There's no point thinking in terms of additional borrowing. When you sell, your existing mortgage is repaid and you take out a new one for the amount you need to purchase your new home. You may be able to "port" the rate from the old mortgage if it's advantageous to do so.

Check the calculator to see what is affordable yourself;-

http://www.halifax-intermediaries.co.uk/tools_and_calculators/mortgage_affordability_calculator/default.aspx